Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 12.1997
Length: 16 pages
Data source: Published sources
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Abstract
In mid-1992, Christine Olsen, the chief financial officer of this large CAD/CAM equipment manufacturer, must decide on the magnitude of the firm''s dividend payout. A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising and change its corporate name to reflect its new outlook. The case serves as an omnibus review of the many practical aspects of the dividend decision, including (1) signaling effects, (2) clientele effects, and (3) finance and investment implications of increasing dividend payout.
About
Abstract
In mid-1992, Christine Olsen, the chief financial officer of this large CAD/CAM equipment manufacturer, must decide on the magnitude of the firm''s dividend payout. A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising and change its corporate name to reflect its new outlook. The case serves as an omnibus review of the many practical aspects of the dividend decision, including (1) signaling effects, (2) clientele effects, and (3) finance and investment implications of increasing dividend payout.